Today’s repo was capped at 4 billion lei (some EUR900 million), same as last week. The central bank bought treasuries from 15 lenders at an interest rate of 5.25% a year, equal to the monetary policy rate. The banks had offered to sell paper worth RON17 billion.
Last week, the central bank bought treasuries from 13 commercial lenders through a one-week repurchasing agreement operation, at a similar interest rate. The lenders had offered treasuries worth RON15 billion.
Market participants said the central bank’s decision to limit repo lending has helped strengthen the leu after interbank rates increased slightly.
On the down side, the measure led to higher yields at state treasury auctions.
In the money market, weekly rates were at 5.2%-5.7% a year, slightly down from 5.5%-6% a year Friday.